Archives for Industry News

New Transfer Tax on All Real Property Sales Over $5 Million in LA

Manny Trelles, CPA Tax Manager   Measure ULA (aka the “Homelessness and Housing Solutions Tax”) was recently approved by voters in the City of Los Angeles. The new transfer tax is set to start April 1st, 2023. The transfer tax applies to all real property asset classes in the City of Los Angeles as follows: Residential Property (examples include single-family home, multi-family homes, and apartment buildings) Commercial Property (examples include office buildings, restaurants, or a warehouse) Vacant Land Under the new tax, sales of residential and commercial real property valued at over $5 million but less than $10 million in
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Categories: Industry News and Newsletter and Updates.

Three New Hires Join WFY in November

In November, Wright Ford Young & Co. welcomed three new hires to our tax department and audit department. Jenifer Hwang joined our tax department, and Sean Berlin and Tyler Connally joined our audit department. Welcome to the WFY team, everyone! Jenifer Hwang In mid-November, Jenifer Hwang was welcomed into our tax department as a Tax Senior. She attended school locally and received her degree at Cal State Fullerton. Prior to WFY, Jenifer has been in accounting for five years. During her spare time, she enjoys spending time with family, friends, and her dog; building Legos; and eating delicious food. Sean
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Categories: Company News, Industry News, and Newsletter and Updates.

The Newest Tax Law Sunset Changes

Richard A. Huffman, CPA, MST Tax Partner   The 2017 Tax Cuts and Jobs Act was passed under the tax neutral reconciliation rules and included a significant amount of tax law changes that begin to adjust this year. Here are the details as follows: 2022 Tax Year Changes Research and Development costs Through 2021 research and development costs could be immediately deducted for tax purposes but starting in 2022 are now required to be capitalized and amortized over five years for research conducted within the United States or fifteen years for research conducted outside of the United States. Research and
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Categories: Industry News and Newsletter and Updates.

UPDATE: The Inflation Reduction Act of 2022

  On August 16, 2022, President Joe Biden signed the Inflation Reduction Act of 2022 into law. The provisions included in the Act are intended to address the climate crisis, lowering prescription drug prices, and reduce the deficit – while being paid by several revenue raisers included in the bill. The Act has had undergone some amendments since first being announced late last month. The bill contains various income tax changes – the following is a summary of the final provisions that we feel will most likely impact you: Increased IRS Funding The Act calls for $80 billion to be
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Categories: Industry News and Newsletter and Updates.

Information About The Inflation Reduction Act of 2022

On July 27, 2022, Senators Chuck Schumer and Joe Manchin announced an agreement to add the Inflation Reduction Act of 2022 to the current Budget Reconciliation bill – with a vote to be held this week. The bill includes several proposed revenue raisers and tax changes to fund initiatives aimed at lowering prescription drug prices, addressing the climate crisis, and reduce the deficit. Here is a summary of the proposed tax changes: Increased IRS Funding The Act calls for $80 billion to be invested in the IRS over the next ten years. With over 50% of this amount being appropriated
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Categories: Industry News and Newsletter and Updates.

Tax Exempt Gifts of Tuition and Medical Expenses

Gregory Lambourne, Esq. Senior Planning Consultant   You may be aware that the tax code grants taxpayers a $16,000 annual exemption from gift and generation-skipping transfer (GST) taxes. That means you (and every other taxpayer you know) can gift any person(s) up to $16,000 per year gift and GST tax-free. Good financial planning and estate planning involves utilizing this annual exemption and the estate tax-free compounding such gifting can provide. What you may NOT realize is that you can also gift an UNLIMITED amount of tuition and medical expense payments gift and GST tax-free, so long as you make those
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Categories: Industry News and Newsletter and Updates.

Key Take-Aways from 2022 AICPA & CIMA Employee Benefit Plans Conference

By Jennifer Haddad, CPA Audit Partner, ERISA Plan Audits Audit Director   Every year, Wright Ford Young & Co. attends the annual AICPA & CIMA Employee Benefit Plans Conference. The multi-day conference includes a comprehensive lineup of sessions, delivered by top regulators and expert practitioners.  Sessions at the conference include topics such as the new Employee Benefit Plan audit standard (AU-C Section 703), common operational errors, a DOL and IRS regulatory update, and prohibited transactions. The information gathered from the conference does not just benefit us, as the auditors, but is also informative for the Plan Sponsors we work with.
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Categories: Industry News and Newsletter and Updates.

Top Considerations for June 15 CA Passthrough Payment Deadline

Richard A. Huffman, CPA, MST Tax Partner   The June 15 deadline is approaching for the mandatory prepayment of the 2022 California passthrough entity elective tax workaround deposit. Important details to consider are as follows: Benefit By electing to pay the taxpayers California tax at the entity level, the federal itemized deduction state and local $10,000 cap is circumvented thus allowing additional federal tax deductions for state taxes paid.  However, the California law has many requirements and nuances that must be followed and considered to make sure the taxpayer will benefit from the entity tax election. Required minimum payment amount
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Categories: Industry News and Newsletter and Updates.

CA Employers Must Have Retirement Plans for Employees by June 30

By June 30, 2022, any California business owners with five or more employees are required to have a retirement plan for their employees. California businesses with five or more employees must comply with the statewide mandate and offer a retirement plan to their employees by the deadline. Businesses can either go through a private-market option, like a 401(k), or through the state-run CalSavers program. If any California business owners do not provide a retirement plan for their employees by June 30, there will be a penalty of $250 for each employee. Penalties will increase if initial penalties are not addressed.
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Categories: Industry News and Newsletter and Updates.

Expect IRS Delays on Paper Filed Tax Returns

Hani Sharestan, CPA, MST Tax Partner   In amidst of the 2021 tax season, you should expect delays from the IRS in processing paper filed tax returns that require manual processing. Based on a recent published report, the National Taxpayer Advocate said in its annual report to congress the IRS continues to experience unprecedented severe backlogs in processing paper filed tax returns that require manual processing.  The report shared the following data regarding the IRS backlog of unprocessed returns and correspondence: 2 million unprocessed individual returns (Form 1040) mainly from 2020 and before; 8 million unprocessed payroll tax returns (Form
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Categories: Industry News and Newsletter and Updates.